Glassnode warns that Bitcoin is approaching a crucial phase, often signaling a bull market’s end. They are particularly monitoring the short-term holder cost basis, which measures transaction values of Bitcoin held for less than 155 days.

Currently, Bitcoin trades at 95,040 USD, approximately 7% above the short-term holder cost basis of 88,135 USD. A drop below this level could indicate a shift in sentiment among new investors and may suggest a market reversal.

While long-term holders are selling Bitcoin, it is at a slower pace. Notably, despite Bitcoin being down about 12% from its all-time HIGH, most long-term holders remain in profit, which might indicate an essential point in market direction.